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Tea in Saudi Arabia

Jul 2014|Pages: 21

Price: US$900

About this Report

Executive Summary

TRENDS

In recent years, Saudi Arabia has been witnessing a gradual increase in overall health-consciousness among the general public. An alarming obesity rate and associated diseases have compelled the government to initiate various programmes and awareness campaigns to encourage consumers to reduce their fat intake and improve their eating habits. Consumers are also becoming more aware of the hazards of unhealthy lifestyles thanks to growing exposure to the Western world through the increased penetration of the internet and broadcast media and are now starting to include nutritious food items in their diets. With a growing amount of literature surfacing about the health benefits associated with tea, the product’s consumption is also on the rise.

COMPETITIVE LANDSCAPE

Lipton Tea Factory FZE led tea in 2013 with a 39% value share. The company’s flagship brand Lipton is a household name in black tea as well as green tea. The company spent heavily on advertising and marketing activities through all forms of media throughout the year. It was also aggressive in terms of in-store promotions, offering price discounts and extra value packs for its black tea bag range during most of the year. The company also invested heavily in in-store displays and advertising to encourage point-of-sale purchases. All these activities helped Lipton to maintain its leading position.

PROSPECTS

Saudi Arabia is expected to see a continuation of the increasing health awareness trend among the general public as consumers become more exposed to international media and, subsequently, healthier lifestyles. The opening of new health clubs and diet centres, along with the increasing number of health practitioners, is also expected as the government aims to reduce the costs incurred treating obesity-related illnesses. These activities will encourage consumers to include healthier and more nutritious foods in their diets, including tea, which is considered beneficial for health.